Equity Analysis /
Australia

AU : Karoon Energy - Moves while asset window is still open

    Adrian Prendergast
    Adrian Prendergast

    Senior Analyst - Mining and Energy

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    CGS-CIMB
    31 March 2022
    Published byCGS-CIMB

    KAR has entered into a period of exclusivity regarding the potential acquisition of a 50% stake in the Atlanta field. Consistent with KAR’s inorganic strategy, Atlanta is an existing oil field in Brazil (~14kbopd) with growth options (~40kbopd expansion plus 1.3bn bbl OIP). The Atlanta field produces heavy oil (14°API) and is receiving Brent parity. Too soon to form a view with a deal not yet finalised. But the right kind of move from the savvy high-margin oil producer. We maintain our Add rating.